Trésorier/Treasurer magazine - n°82 - July/Aug./Sept. 2013 - (Page 6)

LuxNews Tax News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE — N°82 — juLy / Aug. / sept. 2013 Luxembourg moving towards enhanced cooperation in taxation and exchange of information 6 In March 2013, the Luxembourg Parliament voted a Law transposing the Directive 2011/16/EU on administrative cooperation in the field of taxation (“the Law”) which entered into force with effect from 1 January 2013. In April 2013, Luxembourg has announced automatic exchange of information on interest payments as of 2015. The Law lays down the rules and procedures under which Luxembourg will cooperate with other EU Member States on the exchange of tax related information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Member States. The Law complements Luxembourg’s legislation enabling the exchange of information provided for by double taxation treaties (DTTs). The Law applies to all taxes except value added tax (VAT), customs duties, and excise duties covered by other EU legislation on administrative cooperation between EU countries. It does not apply to social security contributions. The Law does not implement the Directive’s provisions on the automatic exchange of available information, which must become effective as of 1 January 2015 and will cover certain specific categories of income (professional income, director fees, pensions, life assurance and real estate income) to the extent such information is in the tax authorities’ possession. In addition, the EU Commission announced in May 2013 that it intends to propose amendments to the Directive on administrative cooperation in the field of taxation in June 2013 in order for the exchange of information to cover a full range of income. As a result of these changes, Luxembourg will effectively apply the following mechanisms as of fiscal year 2015: l Automatic exchange of information as defined in the EU Savings Directive applicable to interest paid to individuals resident in an EU Member State other than Luxembourg l Exchange of information upon request with other EU Member States, as effective since 1 January 2013 pursuant to the Law on administrative cooperation in the field of taxation l Exchange of information upon request as agreed in double-tax treaties with third countries l Automatic exchange of information with other EU Member States on specific categories of income, only to the extent such information is available to the Luxembourg tax authorities, and subject to conditions and procedures still to be defined and enacted l Other bilateral arrangements with third countries, e.g., as currently under negotiation with the US with respect to the implementation of FATCA (see also news item on FATCA below) l Withholding tax on interest for Luxembourg residents as currently applicable The option to deduct withholding tax from interest payments to EUresident individuals will no longer be applied in the Grand Duchy as of 1 January 2015. The fiscal regime for Luxembourg resident individuals will remain unchanged. Contacts: John Hames, Business Tax Partner John.Hames@lu.ey.com Omid Mohebati, Executive Director Omid.Mohebati@lu.ey.com FATCA The Luxembourg Ministry of Finance announced, that in the context of its Foreign Account Tax Compliance (FATCA) negotiations with the Uni-

Table des matières de la publication Trésorier/Treasurer magazine - n°82 - July/Aug./Sept. 2013

Couverture
EDITORIAL
SOMMAIRE
FINANCIAL HIGHLIGHTS
INTERVIEW - Mr Jacques Lafitte, AVISA
FOCUS
FORUM OF ADVERTISERS
CORPORATE FINANCE
15 MINUTES WITH - Robert Franck - Directeur associé VISCONTI
NEWS
The Financial Risk Observatory

Trésorier/Treasurer magazine - n°82 - July/Aug./Sept. 2013